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Will PPC increase in 2009?

Here are some thoughts from Kevin Lee’s Poll on Linkedin,

Do you think your PPC (Pay Per Click) search spending will grow this year compared to last?

I believe SEM (search engine marketing) will increase, but the real question is will more dollars go to SEO (search engine optimization) or to SEM?

SEM will increase, because it is measurable and you can plan on it a lot more the SEO. More importantly, the results are often quicker with SEM than SEO. These days management wants quick results – harvest the sales this month, not planting for when we might be in business next quarter. SEM has fewer variables as far as knowing at least how many ‘clicks’ you are going to get.  Certainly you still have a lot of back end ratios that can be ‘tweaked’ to get your true CPA (Cost Per Action) including copy, call to action and creativity. But at least you can report a ‘we had a million people come to the site’ that matches up well with the retail side of ‘Orbit’ people counters or what ever the ‘bricks’ side is using to count bodies. ‘Orbit’ people counters are devices that counts number of people entering a store each hour-most stores are counting how many are entering the store, as well as how many are buying and average spent per visit.

I think the answer is –  it will be a draw – more dollars will go into SEO as SEM gets saturated. But SEM will get the easy money as response from traditional marketing continues to drop in response to TiVo, DVR, Hulu, YouTube, programming fragmentation (what time was that show on? – now its what day, time and station is that show on?), programming standardization (how many ‘dancing shows’ are there?) and simplification (reality TV), diluting brand equity and a host of other core mistakes on the traditional marketing side as it tries to adapt to the changing world of ‘500 channels of TV and nothing’s on’.

It will be interesting to see if the additional money in SEM produces good results or will too many hacks waste too much money and destroy the reputation of the industry for years to come, pushing marketing dollars back into traditional marketing as soon as the economy recovers, and traditional marketing can get their own act together for measurable results (especially with live viewings vs. 24 hour viewings vs. 7 day viewings).

So what do you think? Are you investing more in PPC in 2009 than in 2008?

June 23, 2009 Posted by | SEM Industry | , , , , , , | 2 Comments